General Employment Reports Second Quarter Results

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.

Business Information

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.