General Employment Reports Fourth Quarter and Fiscal 2008 Results

OAKBROOK TERRACE, Ill., Nov. 24  /PRNewswire-FirstCall/ -- General Employment Enterprises, Inc. (NYSE Alternext US: JOB) reported consolidated net revenues for the quarter ended September 30, 2008 of $3,760,000, a 25% decrease compared with consolidated net revenues of $5,022,000 reported for the same period last year.

Placement service revenues for the quarter were $1,949,000, down from $2,829,000 for the same period last year.  Contract service revenues of $1,811,000 decreased from $2,193,000 last year.

The Company reported a net loss for the quarter of $474,000, or $.09 per diluted share, compared with net income of $344,000, or $.06 per diluted share, for the same period last year.

Commenting on the Company's performance for the quarter, Herbert F. Imhoff, Jr., board chairman and CEO, said, "Our fourth quarter results were adversely affected by the turmoil in the U.S. financial markets and deteriorating employment conditions. Clients became increasingly cautious about hiring, and consolidated net revenues declined 25% from the fourth quarter of last year."

Mr. Imhoff added, "On a positive note, our revenues improved by 4% and the net loss narrowed, compared with this year's third quarter."

Fiscal Year Results

For the fiscal year ended September 30, 2008, the Company had a net loss of $1,806,000, or $.35 per diluted share, compared with net income of $914,000, or $.17 per diluted share, for the same period last year. Consolidated net revenues for the fiscal year were $15,235,000, a 23% decrease compared with $19,690,000 last year.

Business Information

General Employment provides professional staffing services through a network of 17 branch offices located in nine 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 OPERATIONS
                     (In Thousands, Except Per Share)

                            Three Months Ended            Year Ended
                               September 30              September 30
                            2008          2007         2008         2007
  Net revenues:
    Contract services      $1,811        $2,193       $7,476       $8,448
    Placement services      1,949         2,829        7,759       11,242
    Net revenues            3,760         5,022       15,235       19,690

  Operating expenses:
    Cost of contract
     services               1,221         1,417        5,037        5,641
    Selling, general
     and administrative     2,986         3,337       12,041       13,436
    Total operating
     expenses               4,207         4,754       17,078       19,077

  Income (loss)from
   operations                (447)          268       (1,843)         613
  Investment income (loss)    (27)           76           37          301

  Net income (loss)(1)      $(474)         $344      $(1,806)        $914

  Average number of
   shares:
    Basic                   5,165         5,153        5,163        5,150
    Diluted                 5,165         5,336        5,163        5,368

  Net income (loss)per
   share:
    Basic                   $(.09)         $.07        $(.35)        $.18
    Diluted                 $(.09)         $.06        $(.35)        $.17

  (1)   There were no credits for income taxes as a result of the pretax
        losses in the 2008 periods, because there was not sufficient
        assurance that future tax benefits would be realized. There were no
        provisions for income taxes in the 2007 periods, because of the
        availability of losses carried forward from prior years.



                   GENERAL EMPLOYMENT ENTERPRISES, INC.
            SUMMARIZED CONSOLIDATED BALANCE SHEET INFORMATION
                              (In Thousands)

                                                  September 30  September 30
                                                      2008          2007
  Assets:
    Cash and cash equivalents                       $4,165         $6,344
    Other current assets                             1,627          2,167

    Total current assets                             5,792          8,511
    Property and equipment, net                        791            929
    Other assets                                       419            436

    Total assets                                    $7,002         $9,876

  Liabilities and shareholders' equity:
    Current liabilities                             $1,507         $2,116
    Other liabilities                                  419            436
    Shareholders' equity (2)                         5,076          7,324

    Total liabilities and shareholders' equity      $7,002         $9,876

  (2)   During the year ended September 30, 2008, the board of directors
        declared a cash dividend in the amount of $.10 per common share,
        resulting in a $517,000 charge to retained earnings.


DATASOURCE: General Employment Enterprises, Inc.



CONTACT:  Herbert F. Imhoff, Jr., Chief Executive Officer and President

of General Employment Enterprises, Inc., [phone], Fax,

[phone], 



Web site:  http://www.generalemployment.com/ 



Company News On-Call:  http://www.prnewswire.com/comp/113698.html

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