x
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Quarterly
Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
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o
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Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
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GENERAL
EMPLOYMENT ENTERPRISES, INC
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(Exact
name of registrant as specified in its charter)
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Illinois
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36-6097429
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(State
or other jurisdiction of incorporation or organization)
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(I.R.S.
Employer Identification Number)
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One Tower Lane, Suite 2200, Oakbrook Terrace,
Illinois 60181
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(Address
of principal executive offices)
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(630) 954-0400
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(Registrant’s
telephone number, including area
code)
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Large
accelerated filer o
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Accelerated
filer o
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Non-accelerated
filer o
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Smaller reporting
company x
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December
31
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September
30
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|||||||
2009 |
2009
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|||||||
(In Thousands)
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(Unaudited)
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|||||||
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|||||||
ASSETS
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|||||||
Current
assets:
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|||||||
Cash
and cash equivalents
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$ | 2,247 | $ | 2,810 | ||||
Accounts
receivable, less allowances (December 2009 - $95; September 2009 -
$76)
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801 | 1,038 | ||||||
Other current assets
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211 | 249 | ||||||
Total
current assets
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3,259 | 4,097 | ||||||
Property and equipment, net
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520 | 570 | ||||||
Total assets
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$ | 3,779 | $ | 4,667 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
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||||||||
Current
liabilities:
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||||||||
Accounts
payable
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$ | 301 | $ | 348 | ||||
Accrued
compensation
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461 | 666 | ||||||
Other current liabilities
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459 | 474 | ||||||
Total current liabilities
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1,221 | 1,488 | ||||||
Long-term obligations
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540 | 575 | ||||||
Shareholders’
equity:
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||||||||
Preferred
stock; authorized - 100 shares; issued and outstanding -
none
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— | — | ||||||
Common
stock, no-par value; authorized - 20,000 shares; issued and outstanding -
13,380 shares
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6,746 | 6,743 | ||||||
Accumulated deficit
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(4,728 | ) | (4,139 | ) | ||||
Total shareholders’ equity
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2,018 | 2,604 | ||||||
Total liabilities and shareholders’
equity
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$ | 3,779 | $ | 4,667 |
Three
Months
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||||||||
Ended December 31
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||||||||
(In Thousands, Except Per Share
Amounts)
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2009
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2008
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||||||
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||||||
Net
revenues:
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||||||
Contract
services
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$ | 1,402 | $ | 1,545 | ||||
Placement services
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570 | 1,342 | ||||||
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||||||||
Net
revenues
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1,972 | 2,887 | ||||||
Cost
of contract services
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996 | 1,036 | ||||||
Selling, general and administrative
expenses
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1,547 | 2,556 | ||||||
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||||||||
Loss
from operations
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(571 | ) | (705 | ) | ||||
Other expense, net
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18 | 71 | ||||||
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||||||||
Net loss
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$ | (589 | ) | $ | (776 | ) | ||
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||||||||
Average number of shares - basic and
diluted
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13,380 | 5,165 | ||||||
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||||||||
Net loss per share - basic and
diluted
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$ | (.04 | ) | $ | (.15 | ) |
Three
Months
|
||||||||
Ended December 31
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||||||||
(In Thousands)
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2009
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2008
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||||||
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||||||
Operating
activities:
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|||||||
Net
loss
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$ | (589 | ) | $ | (776 | ) | ||
Depreciation
and other noncurrent items
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18 | 65 | ||||||
Changes
in current assets and current liabilities -
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||||||||
Accounts
receivable
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237 | 251 | ||||||
Accounts
payable
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(47 | ) | (35 | ) | ||||
Accrued
compensation
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(205 | ) | (389 | ) | ||||
Other current items, net
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23 | (124 | ) | |||||
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||||||||
Net cash used by operating
activities
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(563 | ) | (1,008 | ) | ||||
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||||||||
Decrease
in cash and cash equivalents
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(563 | ) | (1,008 | ) | ||||
Cash and cash equivalents at beginning of
period
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2,810 | 4,165 | ||||||
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||||||||
Cash and cash equivalents at end of
period
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$ | 2,247 | $ | 3,157 |
Three
Months
|
||||||||
Ended December 31
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||||||||
(In Thousands)
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2009
|
2008
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||||||
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||||||
Common
shares outstanding:
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|
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||||||
Number at beginning of
period
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13,380 | 5,165 | ||||||
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||||||||
Number at end of period
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13,380 | 5,165 | ||||||
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||||||||
Common
stock:
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||||||||
Balance
at beginning of period
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$ | 6,743 | $ | 4,987 | ||||
Stock compensation expense
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3 | 9 | ||||||
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||||||||
Balance at end of period
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$ | 6,746 | $ | 4,996 | ||||
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||||||||
Retained
earnings (accumulated deficit):
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||||||||
Balance
at beginning of period
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$ | (4,139 | ) | $ | 89 | |||
Net loss
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(589 | ) | (776 | ) | ||||
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||||||||
Balance at end of period
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$ | (4,728 | ) | $ | (687 | ) |
Three
Months
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||||||||
Ended December 31
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||||||||
(In Thousands)
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2009
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2008
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||||||
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||||||
Interest
expense
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$ | 10 | $ | — | ||||
Interest
income
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(3 | ) | (22 | ) | ||||
Loss on investments
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11 | 93 | ||||||
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||||||||
Other expense, net
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$ | 18 | $ | 71 |
December
31
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September
30
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|||||||
(In Thousands)
|
2009
|
2009
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||||||
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||||||
Cash
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$ | 2,247 | $ | 510 | ||||
Certificate of deposit
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— | 2,300 | ||||||
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||||||||
Total cash and cash
equivalents
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$ | 2,247 | $ | 2,810 |
December
31
|
September
30
|
|||||||
(In
Thousands)
|
2009
|
2009
|
||||||
Property
and equipment, at cost
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$ | 3,466 | $ | 3,466 | ||||
Accumulated
depreciation and amortization
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(2,946 | ) | (2,896 | ) | ||||
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||||||||
Property
and equipment, net
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$ | 520 | $ | 570 |
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·
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Compensation
in the operating divisions, which includes commissions earned by the
Company’s employment consultants and branch managers on permanent and
temporary placements. It also includes salaries, wages,
unrecovered advances against commissions, payroll taxes and employee
benefits associated with the management and operation of the Company’s
staffing offices.
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·
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Administrative
compensation, which includes salaries, wages, payroll taxes and employee
benefits associated with general management and the operation of the
finance, legal, human resources and information technology
functions.
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·
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Occupancy
costs, which includes office rent, depreciation and amortization, and
other office operating expenses.
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·
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Recruitment
advertising, which includes the cost of identifying job
applicants.
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·
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Other
selling, general and administrative expenses, which includes travel, bad
debt expense, fees for outside professional services and other
corporate-level expenses such as business insurance and
taxes.
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The
following exhibits are filed as a part of Part I of this
report:
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No.
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Description of Exhibit
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Certifications
of the principal executive officer required by Rule 13a-14(a) or Rule
15d-14(a) of the Exchange Act.
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Certifications
of the principal financial officer required by Rule 13a-14(a) or Rule
15d-14(a) of the Exchange Act.
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Certifications
of the principal executive officer required by Rule 13a-14(a) or Rule
15d-14(a) of the Exchange Act and Section 1350 of Title 18 of the United
States Code.
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Certifications
of the principal financial officer required by Rule 13a-14(a) or Rule
15d-14(a) of the Exchange Act and Section 1350 of Title 18 of the United
States Code..
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GENERAL EMPLOYMENT ENTERPRISES,
INC.
(Registrant)
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Date: February
3, 2010
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By: /s/ Kent M. Yauch
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Kent
M. Yauch
|
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Vice
President, Chief Financial Officer and Treasurer (Principal financial and
accounting officer and duly authorized
officer)
|