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General Employment revenue falls 17%

February 21 2014

Revenue fell 17 percent at General Employment Enterprises Inc. (NYSE MKT: JOB) to $9.1 million in the company’s fiscal first quarter ended Dec. 31. The Oakbrook Terrace, Ill.-based staffing firm said the year-over-year comparison was impacted because the first quarter of the previous year had a significant amount of contract work for the cleanup after Hurricane Sandy in the New York and New Jersey area.

“Although not apparent in the quarterly numbers, the company’s sales are trending positively and the industry overall continues to grow,” CFO Andrew Norstrud said. “The decrease in our quarterly revenue stemmed from an inordinate amount of sales realized in the comparable quarter in the prior year which was the result of contract labor related to the cleanup of the devastation left by Hurricane Sandy; a horrific event that we hope does not repeat itself.”

Norstrud added, “We have already started to implement defined strategic growth initiatives that will benefit the business not only this year but in the long-term.”

First-quarter gross margin narrowed to 29.6 percent from 31.8 percent in the year-ago quarter.

General Employment reported a second-quarter net loss of $227,000 compared with a net income of $186,000 in the year-ago period.

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

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