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View All NewsGeneral Employment revenue up 2% in fiscal Q2
General Employment Enterprises Inc. (NYSE MKT: JOB), an Oakbrook Terrace, Ill.-based staffing provider, reported net revenue rose 1.7% to $9.8 million in its 2015 second fiscal quarter ended March 31. Net revenue was $10.8 million on a pro forma basis, which includes results of Scribe Solutions, acquired in April.
(US$ thousands) | Q2 2015 | Q2 2014 | % growth |
Net revenue | $9,796 | $9,634 | 1.7% |
Gross margin | 28.4% | 30.3% | |
Net loss | -$45 | -$727 | nm |
Scribe’s former chairman and CEO Derek Dewan assumed the chairman and CEO roles at General Employment following the acquisition.
General Employment’s gross margin for the quarter narrowed, attributable to increased contract staffing year over year and fewer permanent placements in the 2015 second quarter.
General Employment provides professional staffing in IT, engineering and accounting. It also provides light industrial staffing. Its brands include General Employment, Ashley Ellis, Triad, Omni-One and Scribe Solutions.
Quote
“The quarterly results show that the Company has much improved its financial position and continues to do so,” said Chariman and CEO Derek Dewan. “We continued to reduce our non-core expenses and streamline processes to maximize operational efficiency. Additionally, our focus on higher margin and more profitable customers, hiring and deploying more experienced recruiters, continued growth in light industrial staffing services together with increasing our depth of service offerings in professional staffing, should help drive performance going forward for the remainder of this fiscal year.”
Revenue by segment
(US$ thousands) | Q2 2015 | Q1 2014 | % growth |
Contract staffing services | $8,314 | $7,858 | 5.8% |
Direct hire placement services | $1,482 | $1,776 | -16.6% |
Share price and market cap
General Employment shares fell 01.23% today in early afternoon trading to 80 cents; the company has a market cap of $23.20 million, according to Yahoo!