General Employment Reports Second Quarter Results
OAKBROOK TERRACE, Ill., April 30 /PRNewswire-FirstCall/ -- General Employment Enterprises, Inc. (Amex: JOB) reported net income of $90,000, or $.02 per share, for the quarter ended March 31, 2007, compared with net income of $175,000, or $.03 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $4,960,000, down 1% from $5,000,000 for the same quarter last year. Placement service revenues of $2,847,000 were up 23%, while contract service revenues of $2,113,000 decreased 21%.
Commenting on the Company's performance for the quarter, Herbert F. Imhoff, Jr., board chairman and CEO, said, "In our placement services division, we saw a continuation of the strong revenue growth that we have experienced for several quarters. We made 12% more placements and realized an 8% higher average placement fee. In our contract services division, however, we saw continued weakness, and billable hours dropped 25%." Mr. Imhoff added, "The decline in consolidated net revenues, together with a 1% increase in operating expenses, resulted in a 49% decrease in net income for the quarter."
Six Months Results
For the six months ended March 31, 2007, the Company had net income of $386,000, or $.07 per share, a 27% increase compared with net income of $303,000, or $.06 per share, for the same period last year. Consolidated net revenues for the six-month period were $9,804,000, up 1% compared with $9,713,000 last year.
General Employment provides professional staffing services through a network of 19 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 INCOME (In Thousands, Except Per Share) Three Months Six Months Ended March 31 Ended March 31 2007 2006 2007 2006 Net revenues: Contract services $ 2,113 $ 2,685 $ 4,313 $ 5,323 Placement services 2,847 2,315 5,491 4,390 Net revenues 4,960 5,000 9,804 9,713 Operating expenses: Cost of contract services 1,442 1,902 2,918 3,758 Selling 1,848 1,420 3,452 2,690 General and administrative 1,639 1,554 3,190 3,056 Total operating expenses 4,929 4,876 9,560 9,504 Income from operations 31 124 244 209 Investment income 59 51 142 94 Net income (1) $ 90 $ 175 $ 386 $ 303 Average number of shares: Basic 5,148 5,148 5,148 5,148 Diluted 5,381 5,328 5,358 5,351 Net income per share - basic and diluted $ .02 $ .03 $ .07 $ .06 (1) There was no provision for income taxes in either year, because of the availability of losses carried forward from prior years. GENERAL EMPLOYMENT ENTERPRISES, INC. SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION (In Thousands) March 31 September 30 2007 2006 Assets: Cash and cash equivalents $ 5,539 $ 5,904 Other current assets 2,806 2,570 Total current assets 8,345 8,474 Property and equipment, net 928 801 Total assets $ 9,273 $ 9,275 Liabilities and shareholders' equity: Current liabilities $ 2,524 $ 2,423 Shareholders' equity(2) 6,749 6,852 Total liabilities and shareholders' equity $ 9,273 $ 9,275 (2) During the six months ended March 31, 2007, the board of directors declared a cash dividend of $.10 per common share, resulting in a $515,000 charge to retained earnings.
SOURCE General Employment Enterprises, Inc.
Released April 30, 2007