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General Employment Enterprises, Inc. Reports Third Quarter Results

General Employment Enterprises, Inc. Reports Third Quarter Results

General Employment Enterprises, Inc. has reported consolidated net revenues of $11,717,000 for the quarter ended June, 30, 2011, an increase of $7,881,000 (205.4%) over the consolidated net revenues of $3,836,000 reported for the same period last year. Revenues from the Company's acquisition of certain assets constituting the businesses of On-Site ($5,635,000), RFFG of Cleveland($1,294,000), DMCC ($905,000) and fees earned under the Management Agreement ($336,000) collectively contributed $8,170,000 in revenue for the period. Professional contract and placement services increased by $321,000 (20.0%) and $288,000 (33.7%) from the same period last year, respectively.

Net income from continuing operations was $222,000 or $.01 per share, in the third quarter of this fiscal year, compared with a net loss of $137,000, or $.01 per share, in the third quarter last fiscal year. The Company's acquisitions and control over general and administrative costs were contributing factors in the improvement in the Company's performance. For purposes of calculating the diluted earnings per-share amounts, the number of average common shares outstanding was 20,750,000 in the current quarter, compared with 13,867,000 in the prior-year quarter.

The Company had Earnings Before Income taxes, Depreciation and Amortization (EBITDA) for the quarter ended June 30, 2011 of $494,000 compared to a EBITDA loss of $63,000 for the three months ending June 30, 2010. See EBITDA reconciliation schedule for additional details of our calculation.

Commenting on the Company's performance, Salvatore J. Zizza, CEO, stated, "We are pleased by our third quarter results. The acquisitions we made over the past year have had a significant impact on our performance and we will continue to actively evaluate potential acquisitions. We are well positioned to meet our goal of growing the Company both organically and through acquisitions."

Nine Month Results

General Employment Enterprises, Inc. reported consolidated net revenues of $25,592,000 for the nine-months ended June 30, 2011, an increase of $17,756,000 (226.6%) over the consolidated net revenues of $7,836,000 for the same period last year. Revenues from the Company's acquisition of certain assets of On-Site ($11,047,000), RFFG of Cleveland($2,984,000), and DMCC ($2,142,000) as well as fees earned under the Management Agreement ($786,000), collectively contributed $16,959,000 in revenue for the period. Professional contract and placement services increased by $638,000 (14.3%) and $1,059,000 (53.1%) from the same period last year, respectively. The increase in placements and Professional contract services is due to the improvement in the economy and the job market.

The Company had a net income of $133,000 or $.01 per share, for the nine months ending June 30, 2011, compared with a net loss of $1,426,000 or $.11 per share, for the nine months ending June 30, 2010. For purposes of calculating the diluted earnings per-share amounts, the number of average common shares outstanding was 18,884,000 for the nine months ending June 30, 2011, compared with 13,542,000 in the prior-year ending June 30, 2010.

The Company had Earnings Before Income taxes, Depreciation and Amortization (EBITDA) for the nine months ended June 30, 2011 of $789,000 compared to a EBITDA loss of $1,232,000 for the nine months ending June 30, 2010.

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