EX-99.1 2 g05922exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 PRESS RELEASE
 

Exhibit 99.1

(ABLEST LOGO)
FOR IMMEDIATE RELEASE
Wednesday, March 7, 2007
1511 N. Westshore Blvd., Suite 900
Tampa, Florida 33607
(813) 830-7700
www.ablest.com
SYMBOL: AIH
TRADED: AMEX


ABLEST ANNOUNCES 2006 OPERATING RESULTS
     TAMPA, FL., Mar. 7 — Ablest Inc. (Amex: AIH) today announced that revenue for the fifty-three week 2006 fiscal year increased 2.4 percent to $140.8 million from $137.5 million in the corresponding fifty-two week prior fiscal year. Operating income for the fiscal year 2006 was $2.4 million as compared to operating income of $3.1 million for the similar period last year, a decrease of 21.1 percent. For the fifty-three week fiscal year ended December 31, 2006, the company reported net income of $1.3 million or $0.45 per diluted share compared to net income of $536,000 or $0.18 per diluted share for the fifty-two week fiscal year ended December 25, 2005. In the fourth quarter of 2005, the company recorded a $1.2 million income tax adjustment relating to an Internal Revenue Service audit of its previously filed 2001 tax return.
     Revenues for the fiscal fourth quarter ended December 31, 2006 decreased 7.95 percent to $35.9 million from revenue of $39.0 million in the fiscal fourth quarter of 2005. Operating income for the fiscal fourth quarter ended December 31, 2006 decreased 34.6 percent to $747,000 compared to $1.1 million in the corresponding quarter of 2005. Net income was $310,000 or $0.10 per diluted share, compared to a net loss of $669,000 or $0.23 per diluted share for the similar period last year.
     Kurt R. Moore, president and chief executive officer, said, “Revenue was impacted by slowdowns in the homebuilding, furniture and consumer products markets. Net income reflected increased selling, general and administrative expenses from new commercial branch offices, and deployment of new front and back-office computer systems. Although the revenue trend experienced in the fourth quarter of 2006 is continuing in the first quarter of 2007, we are confident investments in new branches and technology will yield improved results as 2007 progresses.”
     With respect to the ongoing deliberations of the Special Committee of the Board of Directors formed on January 18, 2007, Richard W. Roberson, the Chairman of the Special Committee, said, “The Special Committee continues to evaluate the buyout proposal received from a group led by members of senior management, as well as other strategic alternatives for the company. The committee is also evaluating an indication of interest received from a potential third-party acquirer.” Mr. Roberson stated, “The Special Committee currently does not intend to make any further public announcements regarding its review of possible strategic alternatives until its evaluation process has been completed,” adding that, “no assurances can be given as to whether any particular strategic alternatives will be pursued or implemented.”
     Ablest Inc. provides its clients with staffing solutions, managed services and vendor-on-premise (VOP) programs. Staffing solutions include clerical, industrial and information technology personnel provided through Ablest Staffing Services and Ablest Technology Services. Ablest supplies more than 35,000 field employees and consultants to approximately 2,000 businesses annually through 61 locations in the Eastern and Southwestern United States.
     Statements made in this news release, other than those concerning historical information, should be considered forward-looking and are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, negative developments with significant customers, new regulations, loss of key personnel or any significant economic downturn, as well other risks and uncertainties disclosed from time to time in the Company’s periodic reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission.
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PAGE 2 / ABLEST ANNOUNCES 2006 OPERATING RESULTS
ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)
                                 
    Thirteen     Fifty-Three     Fifty-Two  
    Week     Week     Week  
    Periods Ended     Period Ended     Period Ended  
    Dec 31, 2006     Dec 25, 2005     Dec 31, 2006     Dec 25, 2005  
     
Net service revenues
  $ 35,888     $ 38,998     $ 140,764     $ 137,457  
Cost of services
    29,684       32,497       116,326       114,471  
     
Gross profit
    6,204       6,501       24,438       22,986  
 
                               
Selling, general and administrative expenses
    5,457       5,358       22,002       19,899  
     
Operating income
    747       1,143       2,436       3,087  
 
                               
Other:
                               
Interest income, net
    7       (7 )     29       (7 )
Miscellaneous income (expense), net
    1             22       (2 )
     
Other income (expense)
    8       (7 )     51       (9 )
     
Income from continuing operations before income taxes
    755       1,136       2,487       3,078  
 
                               
Income tax expense
    445       1,805       1,148       2,542  
     
Net income
  $ 310     $ (669 )   $ 1,339     $ 536  
     
Basic net income per common share
  $ 0.11     $ (0.23 )   $ 0.47     $ 0.19  
     
 
                               
Diluted net income per common share
  $ 0.10     $ (0.23 )   $ 0.45     $ 0.18  
     
Weighted average number of common shares in computing net income per common share
                               
Basic
    2,873,134       2,863,133       2,877,546       2,861,097  
     
Diluted
    2,962,096       2,929,657       2,959,968       2,922,981  
     
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PAGE 3 / ABLEST ANNOUNCES 2006 OPERATING RESULTS
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
(Unaudited)
                 
    December 31, 2006     December 25, 2005  
ASSETS
               
CURRENT ASSETS
               
Cash
  $ 3,040     $ 1,931  
Accounts receivable, net
    17,564       18,760  
Prepaid expenses and other current assets
    439       469  
Current deferred tax asset
    1,213       1,246  
     
Total current assets
    22,256       22,406  
 
               
Property, plant and equipment, net
    3,259       1,732  
Deferred tax asset
    702       863  
Goodwill
    1,283       1,283  
Other assets
    64       171  
     
Total assets
  $ 27,564     $ 26,455  
     
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES
               
Accounts payable
  $ 375     $ 790  
Income taxes payable
    296       51  
Accrued insurance
    2,965       2,536  
Accrued wages
    1,995       2,738  
Other current liabilities
    566       514  
     
Total current liabilities
    6,197       6,629  
 
               
Other liabilities
    261       432  
     
Total liabilities
    6,458       7,061  
     
 
               
COMMITMENTS AND CONTINGENCIES
               
 
               
STOCKHOLDERS’ EQUITY
               
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at December 31, 2006 and December 25, 2005
           
Common stock of $.05 par value; 7,500,000 shares authorized, 3,385,153 and 3,346,877 shares issued and outstanding including shares held in treasury at December 31, 2006 and December 25, 2005, respectively
    169       167  
Additional paid-in capital
    5,636       5,265  
Retained earnings
    17,411       16,072  
Treasury stock at cost; 457,729 shares held at December 31, 2006 and December 25, 2005
    (2,110 )     (2,110 )
     
Total stockholders’ equity
    21,106       19,394  
     
Total liabilities and stockholders’ equity
  $ 27,564     $ 26,455  
     
#####
     
SOURCE:
  Ablest Inc.
CONTACT:
  John Horan, Vice President and Chief Financial Officer
 
  813-830-7700 or jhoran@ablest.com/