JOB posts Q2 .03 vs. Nil. 5% increase in revenue. I wonder what they will do w/ that 90 cents in cash on the balance sheet?
General Employment Reports Second Quarter Results
PR Newswire - April 27, 2006 17:10
OAKBROOK TERRACE, Ill., April 27, 2006 /PRNewswire-FirstCall via COMTEX/ -- General Employment Enterprises, Inc. (Amex: JOB) reported net income of $175,000, or $.03 per share, for the quarter ended March 31, 2006, compared with net income of $21,000 for the same quarter last year.
The Company's consolidated net revenues for the quarter were $5,000,000, up 5% from $4,752,000 for the same quarter last year. Placement service revenues of $2,315,000 were up 17%, while contract service revenues of $2,685,000 decreased 3%.
Commenting on the Company's performance for the quarter, Herbert F. Imhoff, Jr., board chairman and CEO, said, "Since 2004, there has been a growing demand for the Company's placement services. We saw this trend continue during the second quarter, as the number of placements increased by 11% and average fees rose by 8% over the prior year, resulting in a 17% improvement in placement service revenues. The average contract hourly billing rate increased by 5% during the second quarter. However, this was offset by a 9% decrease in billable hours, and resulted in lower contract service revenues for the period."
Six Months Results
For the six months ended March 31, 2006, the Company had net income of $303,000, or $.06 per share, a 116% increase compared with net income of $140,000, or $.03 per share, for the same period last year. Consolidated net revenues for the six-month period were $9,713,000, up 1% compared with $9,634,000 last year.
There was no provision for income taxes in either year, because of the availability of losses carried forward from prior years.
Concluding his comments, Mr. Imhoff said, "I'm pleased by the Company's improved performance this year and expect to see continuing increases, particularly in placement services. Overall, we believe fiscal 2006 should be another good year for General Employment."
Business Information
This news release contains forward-looking statements that are based on management's current expectations and are subject to risks and uncertainties. Some of the factors that could affect the Company's future performance include 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, and the ability of the Company to attract and retain qualified corporate and branch management.
General Employment provides professional staffing services through a network of 19 branch offices located in 10 states, and specializes in information technology, accounting and engineering placements. The Company's shares are traded on the American Stock Exchange under the trading symbol JOB.
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands, Except Per Share)
Three Months Six Months
Ended March 31 Ended March 31
2006 2005 2006 2005
Net revenues:
Contract services $ 2,685 $ 2,771 $ 5,323 $ 5,730
Placement services 2,315 1,981 4,390 3,904
Net revenues 5,000 4,752 9,713 9,634
Operating expenses:
Cost of contract services 1,902 1,977 3,758 4,060
Selling 1,420 1,257 2,690 2,411
General and administrative 1,554 1,510 3,056 3,056
Total operating expenses 4,876 4,744 9,504 9,527
Income from operations 124 8 209 107
Investment income 51 13 94 33
Net income (1) $ 175 $ 21 $ 303 $ 140
Average number of shares:
Basic 5,148 5,141 5,148 5,139
Diluted 5,328 5,383 5,351 5,390
Net income per share -
basic and diluted $ .03 $ -- $ .06 $ .03
(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
2006 2005
Assets:
Cash and cash equivalents $ 5,143 $ 5,236
Accounts receivable, net, and
other current assets 2,694 2,496
Total current assets 7,837 7,732
Property and equipment, net 585 632
Total assets $ 8,422 $ 8,364
Liabilities and shareholders' equity:
Current liabilities $ 2,269 $ 2,514
Shareholders' equity 6,153 5,850
Total liabilities and shareholders' equity $ 8,422 $ 8,364
