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General Employment Makes A Second Quarter Loss

General Employment Makes A Second Quarter Loss

General Employment Enterprises, Inc. has reported a second quarter net loss for fiscal 2012 of $515,000 on net revenues of $12,702,000 compared to a net loss of ($104,000) on net revenues $7,904,000 in the second quarter of fiscal 2011. Earnings before interest, taxes, depreciation and amortization ("EBITDA") was a ($319,000) for the three months ended March 31, 2012 as compared to $124,000 for the three months ended March 31, 2011.

Commenting on the Company's performance, Salvatore J. Zizza, Chairman of the Board & CEO stated, "We made significant investments during the quarter in our people and infrastructure which should enable us to better compete in a difficult market. In order to attract, retain and motivate the operating teams in a competitive marketplace, we made a change to the compensation policy in the Professional Services Division. This change offered base salaries instead of salary advances to our consultants. Furthermore, we've seen a 41% decrease in our Agricultural Division revenues as we lost a major customer. Lastly, we did not have the benefit of Management Services segment with the termination of the agreement in July 2011. These challenges more than offset significant revenue and operating profit growth in our Light Industrial Division. We believe we are in a better position to realize a marked improvement in operating income during the second half of fiscal 2012."

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