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General Employment revenue falls 17% in fiscal Q4

December 09, 2014

General Employment Enterprises Inc. (NYSE MKT: JOB), an Oakbrook Terrace, Ill.-based staffing provider, reported net revenue fell 16.7 percent to $9.4 million in the company’s fourth fiscal quarter ended Sept. 30.

The company said the decline in revenue was primarily a result of reducing certain lower margin, less profitable light industrial business.

General Employment reported fourth-quarter net income of $233,000 compared with a net loss of $1.0 million in the year-ago period.

For the full fiscal year 2014, net revenue fell 14.4 percent to $39.8 million. Net loss was $1.3 million compared with a net loss of $1.9 million in fiscal year 2013.

General Employment provides professional staffing in information technology, engineering and accounting. It also provides light industrial staffing. Its brands include General Employment, Ashley Ellis, Triad and Omni-One.

Quote

“Fiscal 2014 was a successful year for the company as we enhanced our financial reporting structure and started to reduce our non-core expenses,” said CEO Andrew Norstrud. “We made excellent progress implementing these operational changes and believe we are now well positioned to capitalize on these improvements to drive performance going forward.”

Revenue

  Q4 2014 (000s) Q4 2013 (000s) % growth
Net revenue $9,447 $11,345 -16.7%

Revenue by segment

  Q4 2014 (000s) Q4 2013 (000s) % growth
Contract staffing services $7,612 $9,835 -22.6%
Direct hire placement services $1,835 $1,510 21.5%

Net income/loss

  Q4 2014 (000s) Q4 2013 (000s)
Net income/loss $233 -$1,021

Share price and market cap

General Employment shares traded today at about 20 cents and General Employment has a market cap of $5.31 million, according to Yahoo!