OAKBROOK TERRACE, Ill., July 27 /PRNewswire-FirstCall/ -- General Employment Enterprises, Inc. reported net income of $400,000, or $.08 per share, for the quarter ended June 30, 2006, compared with net income of $259,000, or $.05 per share, for the same quarter last year.
The Company's consolidated net revenues for the quarter were $5,321,000, about even with $5,319,000 for the same quarter last year. Placement service revenues of $2,755,000 were up 19%, while contract service revenues of $2,566,000 decreased 15%.
Commenting on the Company's performance for the quarter, Herbert F. Imhoff, Jr., board chairman and CEO, said, "I am pleased with the growth that the Company achieved in placement service revenues and earnings. Due to a growing demand for placement services, our net income increased 54% over the third quarter of last year, and we had our most profitable quarter since the 2001 recession began."
Mr. Imhoff went on to say, "The improvement in placement service revenues resulted from a 20% increase in the number of placements and the downturn in contract service revenues reflects a 16% decrease in billable contract hours. Our average placement fees and hourly billing rates were about the same as last year. Because of the stronger demand for placement services, the Company focused its efforts on that business and therefore experienced a lower level of contract business during the quarter."
Nine Month Results
For the nine months ended June 30, 2006, the Company had net income of $703,000, or $.13 per share (diluted), compared with net income of $399,000, or $.07 per share (diluted), for the same period last year. Consolidated net revenues for the nine-month period were $15,034,000, up 1% compared with $14,953,000 last year.
There was no provision for income taxes in either year, because of the availability of losses carried forward from prior years.
Business Information
General Employment provides professional staffing services through a network of 20 branch offices located in 10 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. The Company's past revenues and revenue patterns are not necessarily indicative of future performance. 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 qualified personnel for regular full-time placement and contract assignments, 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 Nine Months
Ended June 30 Ended June 30
2006 2005 2006 2005
Net revenues:
Contract services $ 2,566 $ 3,011 $ 7,889 $ 8,741
Placement services 2,755 2,308 7,145 6,212
Net revenues 5,321 5,319 15,034 14,953
Operating expenses:
Cost of contract services 1,848 2,133 5,606 6,193
Selling 1,664 1,403 4,354 3,814
General and administrative 1,453 1,548 4,509 4,604
Total operating expenses 4,965 5,084 14,469 14,611
Income from operations 356 235 565 342
Investment income 44 24 138 57
Net income (1) $ 400 $ 259 $ 703 $ 399
Average number of shares:
Basic 5,148 5,141 5,148 5,140
Diluted 5,313 5,383 5,340 5,361
Net income per share:
Basic $ .08 $ .05 $ .14 $ .08
Diluted $ .08 $ .05 $ .13 $ .07
(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)
June 30 September 30
2006 2005
Assets:
Cash and cash equivalents $ 5,544 $ 5,236
Accounts receivable, net, and
other current assets 2,633 2,496
Total current assets 8,177 7,732
Property and equipment, net 735 632
Total assets $ 8,912 $ 8,364
Liabilities and shareholders' equity:
Current liabilities $ 2,359 $ 2,514
Shareholders' equity 6,553 5,850
Total liabilities and shareholders' equity $ 8,912 $ 8,364
