EX-99.1 2 g96681exv99w1.htm EX-99.1: PRESS RELEASE DATED AUGUST 4, 2005 exv99w1
 

Exhibit 99.1
     
(ABLEST LOGO)
  1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
(727) 299-1200
www.ablest.com
         
FOR IMMEDIATE RELEASE
  SYMBOL:   AIH
Thursday, August 4, 2005
  TRADED:   AMEX
ABLEST REPORTS SECOND QUARTER PROFIT MORE THAN DOUBLED;
SIGNS THREE-YEAR EXTENSION ON CREDIT AGREEMENT AT REDUCED RATES
     CLEARWATER, Fla., Aug. 4 — Ablest Inc. today reported substantially improved financial results for the fiscal second quarter ended June 26, 2005. Revenue increased 22.4 percent to $32.8 million from revenue of $26.8 million in the fiscal second quarter of 2004. Net income increased two-and-one-half times to $574,000 or $0.20 per diluted share compared to net income of $230,000 or $0.08 per diluted share for the same period last year.
     Revenues for the first six months of fiscal 2005 increased 20.9 percent to $63.6 million from $52.6 million in the corresponding period of the prior year. For the six months ended June 26, 2005, the company reported net income of $838,000 or $0.29 per diluted share compared to the same period of 2004 when the company reported a net loss of $211,000 equal to seven cents per share.
     Kurt R. Moore, president and chief executive officer, said, “Our strong second quarter results are attributable to our associates’ hard work in executing Ablest’ service model and expansion plans. We continue to see increases from many of our existing large client companies and have been successful opening new locations. Branches opened less than one year accounted for approximately one half of our revenue increase.”
     “To improve profitability, we focused our selling efforts on higher margin and lower risk accounts,” Mr. Moore said. “The gross margin improvement was driven by our selective addition of higher margin accounts and our ability to reduce the costs associated with larger accounts.” He added, “We are pleased by the favorable results in workers’ compensation costs and will continue our efforts to manage these costs. Also contributing to our improved profitability was our associates’ ability to grow by leveraging the organization’s resources.”
     Mr. Moore also said, “The company renewed for an additional three years its $7.5 million committed credit agreement at a 75 basis-point reduction in borrowing rates. We received excellent support from our banking partner and consider the favorable renewal as acknowledging our strong operational results and solid financial position. We currently have no outstanding debt and this facility will continue to provide us the liquidity necessary to achieve our growth plans.”
     Ablest Inc. provides its clients with staffing solutions, managed services and vendor-on-premise (VOP) programs. Staffing solutions include clerical, industrial, information technology, finance and accounting personnel provided through Ablest Staffing Services, Ablest Technology Services and Ablest Finance and Accounting. Ablest supplies more than 30,000 field employees and consultants to more than 3,500 businesses annually through 52 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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Exhibit 99.1
PAGE 2 / ABLEST REPORTS SECOND QUARTER PROFIT MORE THAN DOUBLED
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 26, 2005     June 27, 2004     June 26, 2005     June 27, 2004  
Net service revenues
  $ 32,751     $ 26,827     $ 63,586     $ 52,597  
Cost of services
    27,009       22,203       52,867       44,344  
 
                       
 
                               
Gross profit
    5,742       4,624       10,719       8,253  
 
                               
Selling, general and administrative expenses
    4,815       4,258       9,364       8,595  
 
                       
 
                               
Operating income (loss)
    927       366       1,355       (342 )
 
                       
 
                               
Other:
                               
Interest income, net
                      2  
Miscellaneous, net
          6       (3 )     1  
 
                       
Other income (loss)
          6       (3 )     3  
 
                       
 
                               
Income (loss) before income taxes
    927       372       1,352       (339 )
 
                               
Income tax expense (benefit)
    353       142       514       (128 )
 
                       
 
                               
Net income (loss)
  $ 574     $ 230     $ 838     $ (211 )
 
                       
 
                               
Basic net income (loss) per common share
  $ 0.20     $ 0.08     $ 0.29     $ (0.07 )
 
                       
 
                               
Diluted net income (loss) per common share
  $ 0.20     $ 0.08     $ 0.29     $ (0.07 )
 
                       
 
                               
Weighted average number of common shares used in computing net income (loss) per common share
                               
Basic
    2,863,509       2,840,443       2,859,043       2,838,197  
 
                       
Diluted
    2,940,368       2,918,708       2,933,530       2,913,641  
 
                       
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Exhibit 99.1
PAGE 3 / ABLEST REPORTS SECOND QUARTER PROFIT MORE THAN DOUBLED
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
                 
ASSETS   June 26, 2005     December 26, 2004  
    (Unaudited)          
CURRENT ASSETS
               
Cash and cash equivalents
  $ 2,886     $ 1,357  
Accounts receivable, net
    15,376       16,783  
Prepaid expenses and other current assets
    689       160  
Current deferred tax asset
    1,369       1,369  
 
           
Total current assets
    20,320       19,669  
 
               
Property, plant and equipment, net
    538       543  
Deferred tax asset
    2,721       3,208  
Goodwill, net
    1,283       1,283  
Other assets
    40       40  
 
           
 
               
Total assets
  $ 24,902     $ 24,743  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY                
CURRENT LIABILITIES
               
Accounts payable
  $ 521     $ 378  
Accrued insurance
    1,642       3,069  
Accrued wages
    2,363       1,989  
Other current liabilities
    505       425  
 
           
Total current liabilities
    5,031       5,861  
 
               
Other liabilities
    151       117  
 
           
 
               
Total liabilities
    5,182       5,978  
 
           
 
               
COMMITMENTS AND CONTINGENCIES
               
 
               
STOCKHOLDERS’ EQUITY
               
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at June 26, 2005 and December 26, 2004
           
Common stock of $.05 par value; 7,500,000 shares authorized, 3,350,097 and 3,334,344 shares issued and outstanding including shares held in treasury at June 26, 2005 and December 26, 2004, respectively
    168       167  
Additional paid-in capital
    5,288       5,172  
Retained earnings
    16,374       15,536  
Treasury stock at cost; 457,729 shares held at June 26, 2005 and December 26, 2004
    (2,110 )     (2,110 )
 
           
 
               
Total stockholders’ equity
    19,720       18,765  
 
           
 
               
Total liabilities and stockholders’ equity
  $ 24,902     $ 24,743  
 
           
     
SOURCE:
  Ablest Inc.
CONTACT:
  Vincent J. Lombardo, Vice President and Chief Financial Officer,
 
  727-299-1200 or vlombardo@ablest.com/

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