EX-99.1 2 g04233exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 PRESS RELEASE
 

Exhibit 99.1
     
(ABLEST LOGO)
  1511 N. Westshore Blvd., Suite 900
Tampa, Florida 33607
(813) 830-7700
www.ablest.com
         
FOR IMMEDIATE RELEASE
  SYMBOL:   AIH
Friday, November 10, 2006
  TRADED:   AMEX
ABLEST INC. REPORTS INCREASED NET INCOME FOR THIRD QUARTER
     TAMPA, Fla., Nov. 10 — Ablest Inc. (Amex: AIH) today reported that net income for the fiscal third quarter ended October 1, 2006 increased to $396,000 or $0.13 per diluted share compared to $367,000 or $0.13 per diluted share for the similar period last year. Revenues were $34.7 million compared to $34.9 million in the 2005 third quarter.
     For the first 40 weeks of fiscal 2006 revenues increased 6.5 percent to $104.9 million from $98.5 million in the corresponding 39-week period of the prior year. Net income was $1.0 million or $0.35 per diluted share compared to $1.2 million equal to $0.41 cents per diluted share for the 39 weeks ended September 25, 2005. Increased selling, general and administrative expenses relating to both new offices and sales staff additions contributed to this reduction in 2006 net income as compared to the prior year.
     Kurt R. Moore, president and chief executive officer, said, “Third quarter 2006 revenues were essentially flat compared to the third quarter 2005 reflecting both the slowdown we are seeing in certain industries such as home building, furniture and consumer products and also our selective paring of customers not meeting our margin expectations. While 2006 year-to-date revenue increased only modestly, gross profit increased 10.6 percent versus the year-ago third quarter level and was up 7.2 percent over the previous quarter’s gross profit due to our strategy execution and servicing efforts to improve pricing and margins across the company.”
About Ablest
     Ablest is a leader in workforce services; creating and delivering local solutions that enable companies to compete and win in an ever-changing business world. Services are provided through its Staffing Services and Professional Services Divisions. Staffing Services offers customers a range of employment services in the office and light industrial sectors including employee assessment and selection, training, managed services and vendor-on-premise (VOP) programs. Professional Services offers employment and consulting services in the Information Technology and Finance and Accounting sectors. Ablest’s Services focus on improving customer performance in the areas of quality, efficiency and cost-reduction within their workforce. Ablest supplies more than 37,000 field employees and consultants to approximately 2,000 businesses annually through 60 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 subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Readers should carefully review and consider disclosures, including periodic reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission, which attempt to advise interested parties of the factors which affect the company’s business.
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PAGE 2 / ABLEST INC. REPORTS INCREASED NET INCOME FOR THIRD QUARTER
ABLEST INC.
Condensed Statements of Income
(amounts in thousands except share and per share data)
(Unaudited)
                                 
    Thirteen   Forty   Thirty Nine
    Week   Week   Week
    Periods Ended   Period Ended   Period Ended
    Oct 1, 2006   Sept 25, 2005   Oct 1, 2006   Sept 25, 2005
     
Net service revenues
   $ 34,672     $ 34,873     $ 104,876     $ 98,459  
Cost of services
     28,491       29,107       86,642       81,974  
     
 
                                
Gross profit
     6,181       5,766       18,234       16,485  
 
                                
Selling, general and administrative expenses
     5,528       5,177       16,545       14,541  
     
 
                                
Operating income
     653       589       1,689       1,944  
 
                                
Other:
                                
Interest income, net
     13       —       22       —  
Miscellaneous income (expense), net
     —       1       21       (2 )
     
 
                                
Other income (expense)
     13       1       43       (2 )
     
Income before income taxes
     666       590       1,732       1,942  
 
                                
Income tax expense
     270       223       703       737  
     
 
                                
Net income
   $ 396     $ 367     $ 1,029     $ 1,205  
     
 
                                
Basic net income per common share
   $ 0.13     $ 0.13     $ 0.35     $ 0.42  
     
 
                                
Diluted net income per common share
   $ 0.13     $ 0.13     $ 0.35     $ 0.41  
     
 
                                
Weighted average number of common shares in computing net income per common share
                                
Basic
     2,879,566       2,863,168       2,879,073       2,860,418  
     
Diluted
     2,972,953       2,930,644       2,961,314       2,922,079  
     
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PAGE 3 / ABLEST INC. REPORTS INCREASED NET INCOME FOR THIRD QUARTER
ABLEST INC.
Condensed Balance Sheets
(amounts in thousands except share data)
(Unaudited)
                 
    October 1, 2006   December 25, 2005
ASSETS
                
CURRENT ASSETS
                
Cash and cash equivalents
   $ 4,251     $ 1,931  
Accounts receivable, net
     16,301       18,760  
Prepaid expenses and other current assets
     704       469  
Current deferred tax asset
     1,017       1,246  
     
 
Total current assets
     22,273       22,406  
 
                
Property and equipment, net
     2,661       1,732  
Deferred tax asset
     867       863  
Goodwill
     1,283       1,283  
Other assets
     63       171  
     
 
                
Total assets
   $ 27,147     $ 26,455  
     
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
 
                
CURRENT LIABILITIES
                
Accounts payable
   $ 203     $ 841  
Accrued insurance
     2,417       2,536  
Accrued wages
     2,948       2,738  
Other current liabilities
     518       514  
     
 
Total current liabilities
     6,086       6,629  
 
                
Other liabilities
     265       432  
     
 
                
Total liabilities
     6,351       7,061  
     
 
                
COMMITMENTS AND CONTINGENCIES
                
 
                
STOCKHOLDERS’ EQUITY
                
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at October 1, 2006 and December 25, 2005
     —       —  
Common stock of $.05 par value; 7,500,000 shares authorized, 3,387,118 and 3,334,344 shares issued and outstanding including shares held in treasury at October 1, 2006 and December 25, 2005, respectively
     169       167  
Additional paid-in capital
     5,636       5,265  
Retained earnings
     17,101       16,072  
Treasury stock at cost; 457,729 shares held at October 1, 2006 and December 25, 2005
     (2,110 )     (2,110 )
 
                
     
Total stockholders’ equity
     20,796       19,394  
     
 
                
Total liabilities and stockholders’ equity
   $ 27,147     $ 26,455  
     
#####
     
SOURCE:
  Ablest Inc.
CONTACT:
  John Horan, Vice President and Chief Financial Officer
 
  813/830-7700 or jhoran@ablest.com/