General Employment sees 121 percent 2Q revenue growth

NAPERVILLE - Professional staffing services company General Employment Enterprises reported revenues for the second quarter of fiscal year 2016 rose 121 percent on strong demand in its contract staffing services.

Revenue increased approximately $11.9 million for the quarter to $21.7 million up from $9.8 million from the same periods last year. Contract staffing services contributed $19.6 million or 90 percent of revenue and direct placement services contributed $2.1 million or 10 percent of revenue. The numbers company to contract staffing services of $8.3 million or 85 percent of revenue and direct placement services of $1.5 million or 15 percent of revenue respectively for the same quarter of fiscal 2015.

"We still see strong demand for our higher end specialty staffing services and solutions propelled by a tight labor market for highly skilled professionals and secular drivers fueling the increased use of a flexible on demand workforce," said Derek E. Dewan, chairman and CEO of General Employment.

Revenue from the combined professional contract and professional direct placement services revenue - which is comprised of staffing and solutions in the information technology, engineering, health care and finance and accounting specialties - was $16.8 million and represents 78 percent of total revenue for the 2016 second quarter compared to $3.3 million or 34 percent of total revenue for the second quarter of 2015. The revenue mix shift is due to the execution of the Company's strategic plan to focus on the higher margin professional staffing and solutions services sectors through organic growth and acquisitions.

"In addition to proceeding with our internal growth strategy, we expect to accelerate making key acquisitions through the use of optimal financing alternatives available to the company as we have been able to assimilate and successfully integrate many functions of the acquired companies, realize synergies and continue to achieve significant profitability," Dewan said.

"General Employment will continue to build out its geographic footprint, expand the company's national

delivery network and broaden its service offerings in the information technology, engineering, health care and finance and accounting specialty staffing sectors," he added.