EX-12 3 g84173exv12.htm AUGUST 1, 2003 PRESS RELEASE August 1, 2003 Press Release
 

Exhibit 12

     
[ABLEST LOGO]   1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
(727) 299-1200
www.ablest.com
         
FOR IMMEDIATE RELEASE
Friday, August 1, 2003		   SYMBOL:
TRADED: 		  AIH
AMEX

ABLEST REPORTS SECOND QUARTER AND FIRST HALF RESULTS

     CLEARWATER, Fla., Aug. 1 — Ablest Inc. today announced that revenue of $24.3 million for the second fiscal quarter ended June 29, 2003, while off 7.5 percent from the corresponding quarter last year, represented a 4.4 percent sequential increase from the first quarter of 2003. The company incurred a second quarter net loss of $72,000 or three cents per basic and diluted share compared with earnings of $405,000 or $0.14 per basic and diluted share for the second quarter of 2002.

     Revenue for the first six months of fiscal 2003 increased 4.4 percent to $47.5 million from $45.5 million in the prior year. For the six months ended June 29, 2003, the company incurred a net loss of $141,000 or five cents per basic and diluted share. For the first half of the prior year, the company reported net income of $78,000 or three cents per share.

     W. David Foster, chief executive officer, noted that 2003 second quarter and first half results were impacted by a $600,000 increase in the company’s reserves for workers’ compensation claims due to adverse developments in a small group of claims originated in 2001 and 2002.

     Mr. Foster added, “We are pleased with the second quarter revenue growth over the first quarter in both our light industrial and clerical businesses. The shortfall compared to the year-ago quarter was primarily attributable to a reduction in the needs of one large account.”

     “We are encouraged by continued stable demand for our services despite ongoing economic weakness,” Mr. Foster continued. “While we are uncertain when the economic recovery will occur, we continue to drive revenue and service. We continue to closely manage expenses and staff levels, lowering SG&A in 2003 by 13 percent for the quarter and 6.1 percent for the six months.”

     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 30,000 field employees and consultants to more than 3,500 businesses annually through 44 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 REPORTS SECOND QUARTER AND FIRST HALF RESULTS

ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)

                                     
        For the Thirteen Week   For the Twenty-six Week
        Periods Ended   Periods Ended
       
 
        June 29, 2003   June 30, 2002   June 29, 2003   June 30, 2002
       
 
 
 
Net service revenues
   $ 24,264     $ 26,234     $ 47,503     $ 45,461  
Cost of services
     20,550       21,411       39,666       37,027  
 
    
     
     
     
 
 
                                
   
Gross profit
     3,714       4,823       7,837       8,434  
 
                                
Selling, general and administrative expenses
     3,830       4,404       8,075       8,597  
 
    
     
     
     
 
 
                                
   
Operating income (loss)
     (116 )     419       (238 )     (163 )
 
    
     
     
     
 
 
                                
Other:
                                
 
Interest income (expense), net
     (17 )     (6 )     (22 )     44  
 
Miscellaneous, net
     17       (8 )     33       (4 )
 
    
     
     
     
 
   
Other income (loss)
     —       (14 )     11       40  
 
    
     
     
     
 
   
Income (loss) before income taxes
     (116 )     405       (227 )     (123 )
 
                                
Income tax expense (benefit)
     (44 )     —       (86 )     (201 )
 
    
     
     
     
 
 
                                
   
Net income (loss)
   $ (72 )   $ 405     $ (141 )   $ 78  
 
    
     
     
     
 
 
                                
   
Basic net income (loss) per common share
   $ (0.03 )   $ 0.14     $ (0.05 )   $ 0.03  
 
    
     
     
     
 
   
Diluted net income (loss) per common share
   $ (0.03 )   $ 0.14     $ (0.05 )   $ 0.03  
 
    
     
     
     
 
   
Weighted average number of common shares in computing net income (loss) per common share
                                
   
Basic
     2,868,381       2,873,007       2,864,845       2,896,944  
 
    
     
     
     
 
 
                                
   
Diluted
     2,868,381       2,893,007       2,864,845       2,916,944  
 
    
     
     
     
 

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PAGE 3 / ABLEST REPORTS SECOND QUARTER AND FIRST HALF RESULTS

ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)

                     
        June 29, 2003   December 29, 2002
       
 
        (Unaudited)        
ASSETS
CURRENT ASSETS
                
 
Cash and cash equivalents
   $ 3,646     $ 1,858  
 
Accounts receivable, net
     11,280       11,639  
 
Prepaid expenses and other current assets
     428       296  
 
Current deferred tax asset
     988       988  
 
    
     
 
   
Total current assets
     16,342       14,781  
 
                
Property, plant and equipment, net
     728       872  
Deferred tax asset, net
     2,234       2,234  
Goodwill, net
     1,283       1,283  
Other assets
     39       46  
 
    
     
 
 
                
   
Total assets
   $ 20,626     $ 19,216  
 
    
     
 
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
                
 
Accounts payable
   $ 196     $ 256  
 
Accrued expenses and other current liabilities
     3,692       4,008  
 
Short-term borrowings
     2,000       —  
 
    
     
 
   
Total current liabilities
     5,888       4,264  
 
                
Other liabilities
     67       81  
 
    
     
 
 
                
   
Total liabilities
     5,955       4,345  
 
    
     
 
COMMITMENTS AND CONTINGENCIES
                
 
                
STOCKHOLDERS’ EQUITY
                
 
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at June 29, 2003 and December 29, 2002
     —       —  
 
Common stock of $.05 par value; 7,500,000 shares authorized, 3,308,929 and 3,293,395 shares issued and outstanding including shares held in treasury at June 29, 2003 and December 29, 2002, respectively
     165       165  
 
Additional paid-in capital
     4,936       4,936  
 
Retained earnings
     11,584       11,725  
 
Treasury stock at cost; 440,207 and 428,341 shares held at June 29, 2003 and December 29, 2002, respectively
     (2,014 )     (1,955 )
 
    
     
 
 
                
   
Total stockholders’ equity
     14,671       14,871  
 
    
     
 
 
                
   
Total liabilities and stockholders’ equity
   $ 20,626     $ 19,216  
 
    
     
 
     
SOURCE:   Ablest Inc.
CONTACT:   Vincent J. Lombardo, Vice President and Chief Financial Officer,
727-299-1200 or vlombardo@ablest.com/