General Employment Enterprises Inc (JOB, Financial) filed Quarterly Report for the period ended 2011-12-31.
General Employment Enterprises Inc has a market cap of $13.2 million; its shares were traded at around $0.69 with a P/E ratio of 21.5 and P/S ratio of 0.4.
The cost of services includes wages and the related payroll taxes and employee benefits of the Company s employees while they work on contract assignments. The cost of contract services for the three months ended December 31, 2011 increased $5,207,000 or 126.6% primarily due to revenue growth. Cost of services expressed as a percentage of net revenue increased from 68.9% for the three months ended December 31, 2010 to 72.9% for the three months ended December 31, 2011 primary due to revenue mix. The current quarter has significantly more Industrial service revenue which carries a lower gross profit percentage. See chart below for summary of Gross Profit % by segment:
For the three months ended December 31, 2011, we saw an improvement in Agricultural Services to 5.7% due to aggressive pricing while we saw a decrease in Professional Services to 31.5% due to a more competitive market place. Industrial Services saw a decrease in margin rate due to the incremental revenue of BMCH Inc. which was had lower margins.
Selling, general and administrative expenses for the three months ended December 31, 2011 increased $1,548,000 or 89.2% compared to the same period last year primarily due to revenue growth. Expressed as a % of revenue, selling, general and administrative expenses decreased from 29.1% to 25.7 % as we leverage our growth.
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General Employment Enterprises Inc has a market cap of $13.2 million; its shares were traded at around $0.69 with a P/E ratio of 21.5 and P/S ratio of 0.4.
Highlight of Business Operations:
Consolidated net revenues increased $6,808,000 or 114.0% from the same period last year primarily due to the acquisition of certain assets of RFFG of Cleveland and DMCC in November 2010. The Industrial Contract Services segment has seen tremendous growth over the last year with the addition of these entities as well as the start up of BMCH Inc. and BMCHPA, Inc. in May 2011 and July 2011, respectively. The incremental revenue growth due BMCH Inc. and BMCHPA, Inc was $4,891,000 in the three months ended December 31, 2011. These increases are coupled with strong demand for Placement Services and Professional Contract Services. Increases in each area were partially offset with a $162,000 decrease in Management Services revenue due to the termination of the agreement with RFFG Inc. in July 2011.The cost of services includes wages and the related payroll taxes and employee benefits of the Company s employees while they work on contract assignments. The cost of contract services for the three months ended December 31, 2011 increased $5,207,000 or 126.6% primarily due to revenue growth. Cost of services expressed as a percentage of net revenue increased from 68.9% for the three months ended December 31, 2010 to 72.9% for the three months ended December 31, 2011 primary due to revenue mix. The current quarter has significantly more Industrial service revenue which carries a lower gross profit percentage. See chart below for summary of Gross Profit % by segment:
For the three months ended December 31, 2011, we saw an improvement in Agricultural Services to 5.7% due to aggressive pricing while we saw a decrease in Professional Services to 31.5% due to a more competitive market place. Industrial Services saw a decrease in margin rate due to the incremental revenue of BMCH Inc. which was had lower margins.
Selling, general and administrative expenses for the three months ended December 31, 2011 increased $1,548,000 or 89.2% compared to the same period last year primarily due to revenue growth. Expressed as a % of revenue, selling, general and administrative expenses decreased from 29.1% to 25.7 % as we leverage our growth.
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