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General Employment net loss rises, CFO cites changes

January 17 2014

General Employment Enterprises Inc. (NYSE MKT: JOB) reported a net loss of $1.6 million in its fiscal  year ended Sept. 30, 2013, compared with net loss of $900,000 in the previous year.

However, full-year net revenue rose by approximately 4 percent to approximately $46.5 million.

Shares in General Employment Enterprises fell by 0.83 percent to 19 cents to in early afternoon trading.

CFO Andrew Norstrud said the company reached a majority of its strategic goals in 2013.

“In addition to the more than $1.2 million of one-time expenses incurred in 2013, we have eliminated the unprofitable agriculture business, closed an unprofitable office in California, eliminated more than $700,000 of unnecessary payroll as of Dec. 31, 2013 and expect to eliminate additional annual expenses of more than $300,000 before March 31, 2014,” Norstrud said. “General Employment Enterprises Inc. has been in business for more than 120 years. With these changes in place, management expects to re-focus the concentration to the company’s long term initiatives versus correcting the mistakes of the recent past.”

The company also announced Edward Hunter resigned as a member of the board of directors for personal reasons. In November, Chairman and CEO Michael Schroering stepped down to pursue his other business interests.

General Employment operates 22 branch offices in 11 states. It provides professional staffing services and light industrial staffing services.

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