General Employment Reports Third Quarter Results

General Employment Reports Third Quarter Results

OAKBROOK TERRACE, Ill., Aug. 16 /PRNewswire-FirstCall/ -- General Employment Enterprises, Inc. (NYSE Amex: JOB) reported consolidated net revenues for the quarter ended June 30, 2010 of $3,836,000, which increased 52% compared with consolidated net revenues of $2,520,000 reported for the same period last year.  Contract service revenues for the quarter $2,982,000 increased 100% from the same period last year primarily due to $1,376,000 of revenue from the On-Site Service acquisition and a 14.5% increase in the average hourly rate. Placement service revenues of $854,000 decreased 17% from last year.

The Company had a net loss of $137,000 or $.01 per share, in the third quarter of this year, compared with a net loss of $2,295,000, or $.44 per share, in the third quarter last year.  For purposes of calculating the per-share amounts, the weighted average number common shares outstanding 13,867,000 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, "We believe the acquisition of On-Services and the recent increase in contract revenue, along with our continued efforts at cost control, will show improvement in our bottom line."

Nine Months Results

For the nine months ended June 30, 2010, the Company had a net loss of $1,426,000, or $.11 per share, compared with a net loss of $4,159,000 or $.81 per share, for the same period last year. Consolidated net revenues for the nine-month period of $7,836,000, were relatively flat compared to last year.

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.



(In Thousands, Except Per Share)

                                 Three Month            Nine Months

                                 Ended June 30          Ended June 30

                                   2010       2009        2010        2009

Net revenues:

Contract services                $ 2,982    $ 1,490     $ 5,840     $ 4,433

Placement services                 854        1,030       1,996       3,446

Net revenues                       3,836      2,520       7,836       7,879

Cost of contract services          2,445      1,040       4,500       3,093

Selling, general and
administrative expenses (1)        1,519      3,809       4,726       8,895

Loss from operations               (128)      (2,329)     (1,390)     (4,109)

Other expense                      (9)        34          (36)        (50)

Net loss (2)                     $ (137)    $ (2,295)   $ (1,426)   $ (4,159)

Average number of shares - basic
and diluted                        13,867     5,165       13,542      5,165

Net loss per share - basic and
diluted                          $ (.01)    $ (.44)     $ (.11)     $ (.81)

(1) Selling, general and administrative expenses for the nine months ended June
    30, 2010 include $100,000 in legal fees, primarily for the proposed
    purchase of GT Systems, Inc. an acquisition that didn't take place.

(2) There were no credits for income taxes as a result of the pretax losses
    during the periods, because there was not sufficient assurance that the
    future tax benefits would be realized.



(In Thousands)

                                           June 30   September 30

                                            2010      2009


Cash and cash equivalents                   $ 555     $ 2,810

Accounts Receivables                          2,130     1,038

Other current assets                          281       249

Total current assets                          2,966     4,097

Property and equipment, net                   423       570

Other assets                                  469       —

Total assets                                $ 3,858   $ 4,667

Liabilities and shareholders' equity:

Current liabilities                         $ 1,669   $ 1,488

Long-term obligations                         468       575

Shareholders' equity                          1,721     2,604

Total liabilities and shareholders' equity  $ 3,858   $ 4,667

SOURCE General Employment Enterprises, Inc.