EX-99.1 2 g02920exv99w1.htm EX-99.1 AUGUST 10, 2006 PRESS RELEASE Ex-99.1 August 10, 2006 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
Thursday, August 10, 2006
  TRADED:   AMEX
ABLEST INC. REPORTS INCREASED REVENUE FOR SECOND QUARTER
     TAMPA, Fla., Aug. 10 — Ablest Inc. today reported that revenue for the fiscal second quarter ended July 2, 2006 increased 4.9 percent to $34.3 million as compared to revenue of $32.8 million in the 2005 second quarter. Net income decreased to $285,000 or $0.10 per diluted share compared to $574,000 or $0.20 per diluted share for the similar period last year. Net income in the fiscal second quarter was negatively impacted because of higher than planned increase in workers’ compensation expense accruals of approximately $254,000.
     Revenues for the first 27 weeks of fiscal 2006 increased 10.4 percent to $70.2 million from $63.6 million in the corresponding 26-week period of the prior year. For the six months ended July 2, 2006, net income was $633,000 or $0.21 per diluted share compared to the first half of 2005 when the company reported net income of $838,000 equal to $0.29 cents per diluted share.
     Kurt R. Moore, president and chief executive officer, said, “The company experienced an increase in claims costs and incidence rates in 2006 which required an increase in our workers’ compensation expense estimates. Senior management is addressing this matter to reduce the growth rate of the expense.”
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 58 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 REVENUE FOR SECOND QUARTER
ABLEST INC.
Condensed Statements of Income
(amounts in thousands except share and per share data)
(Unaudited)
                                 
    For the Thirteen Week     For the Twenty Seven Week     For the Twenty Six Week  
    Periods Ended     Period Ended     Period Ended  
    July 2, 2006     June 26, 2005     July 2, 2006     June 26, 2005  
Net service revenues
  $ 34,340     $ 32,751     $ 70,204     $ 63,586  
Cost of services
    28,398       27,009       58,151       52,867  
 
                       
 
                               
Gross profit
    5,942       5,742       12,053       10,719  
 
                               
Selling, general and administrative expenses
    5,466       4,815       11,017       9,364  
 
                       
 
                               
Operating income
    476       927       1,036       1,355  
 
                       
 
                               
Other:
                               
Interest income, net
    10             9        
Miscellaneous income (expense), net
    19             21       (3 )
 
                       
Other income (expense)
    29             30       (3 )
 
                       
 
                               
Income before income taxes
    505       927       1,066       1,352  
 
                               
Income tax expense
    220       353       433       514  
 
                       
 
                               
Net income
  $ 285     $ 574     $ 633     $ 838  
 
                       
 
                               
Basic net income per common share
  $ 0.10     $ 0.20     $ 0.22     $ 0.29  
 
                       
 
                               
Diluted net income per common share
  $ 0.10     $ 0.20     $ 0.21     $ 0.29  
 
                       
 
                               
Weighted average number of common shares used in computing net income per common share
                               
Basic
    2,933,268       2,863,509       2,915,761       2,859,043  
 
                       
Diluted
    2,971,642       2,940,368       2,952,721       2,933,530  
 
                       
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PAGE 3 / ABLEST INC. REPORTS INCREASED REVENUE FOR SECOND QUARTER
ABLEST INC.
Condensed Balance Sheets
(amounts in thousands except share data)
(Unaudited)
                 
    July 2, 2006     December 25, 2005  
ASSETS
               
CURRENT ASSETS
               
Cash and cash equivalents
  $ 3,698     $ 1,931  
Accounts receivable, net
    16,355       18,760  
Prepaid expenses and other current assets
    704       469  
Current deferred tax asset
    1,246       1,246  
 
           
Total current assets
    22,003       22,406  
 
               
Property and equipment, net
    2,329       1,732  
Deferred tax asset
    681       863  
Goodwill
    1,283       1,283  
Other assets
    245       171  
 
           
 
               
Total assets
  $ 26,541     $ 26,455  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES
               
Accounts payable
  $ 739     $ 841  
Accrued insurance
    2,235       2,536  
Accrued wages
    2,500       2,738  
Other current liabilities
    469       514  
 
           
Total current liabilities
    5,943       6,629  
 
               
Other liabilities
    198       432  
 
           
 
               
Total liabilities
    6,141       7,061  
 
           
 
COMMITMENTS AND CONTINGENCIES
               
 
               
STOCKHOLDERS’ EQUITY
               
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at July 2, 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 July 2,, 2006 and December 25, 2005, respectively
    169       167  
Additional paid-in capital
    5,636       5,265  
Retained earnings
    16,705       16,072  
Treasury stock at cost; 457,729 shares held at July 2, 2006 and December 25, 2005
    (2,110 )     (2,110 )
 
           
 
               
Total stockholders’ equity
    20,400       19,394  
 
           
 
               
Total liabilities and stockholders’ equity
  $ 26,541     $ 26,455  
 
           
#####
     
SOURCE:
  Ablest Inc.
CONTACT:
  John Horan, Vice President and Chief Financial Officer
 
  813/830-7700 or jhoran@ablest.com/