EX-99.1 3 g93407exv99w1.htm EX-99.1 FEBRUARY 22, 2005 PRESS RELEASE Ex-99.1 February 22, 2005 Press Release
 

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
Tuesday, February 22, 2005
  TRADED: AMEX

ABLEST REPORTS RECORD FISCAL 2004 AND FOURTH QUARTER REVENUE

     CLEARWATER, Fla., Feb. 22 — Ablest Inc. today announced record revenue for the fiscal year ended December 26, 2004, of $116.4 million, an increase of 11.8 percent over revenue of $104.0 million in fiscal 2003. Operating income was $1.4 million, a 29.3 percent increase over 2003 operating income of $1.1 million. Net income amounted to $883,000 or $0.30 per diluted share. This compares with 2003 net income of $2.9 million or $1.01 per diluted share, which included a tax benefit related to the reversal of $2.4 million in valuation allowances for deferred taxes.

     For the fourth quarter ended December 26, 2004, revenue increased 13.3 percent to $33.8 million from the previous year’s record fourth quarter level of $29.9 million. During fiscal 2004, quarterly revenue increased sequentially each quarter including a 13.2 percent increase in the fourth quarter compared to the third quarter. Fourth quarter operating income was $767,000 compared to $741,000 for the similar 2003 period.

     “We are pleased with our 2004 results,” said Kurt R. Moore, president and chief executive officer. “Our record revenue for the year was driven by a record fourth quarter that saw strong demand from new and existing light industrial clients. In addition, we opened four new branches in 2004 that contributed $5.4 million in revenue.”

     Mr. Moore added, “Higher unemployment insurance costs and workers’ compensation expenditures have reduced our margins. We have initiatives focused on managing those costs and have aligned our incentive compensation programs with return on revenue. In addition, we continue to closely manage expense levels, and we were able to reduce SG&A expenses as a percentage of revenue.”

     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 49 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 RECORD FISCAL 2004 AND FOURTH QUARTER REVENUE

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

                                 
    For the Thirteen Week     For the Fifty-two Week  
    Periods Ended     Periods Ended  
    December 26, 2004     December 28, 2003     December 26, 2004     December 28, 2003  
Net service revenues
   $ 33,844     $ 29,877     $ 116,353     $ 104,048  
Cost of Services
     28,756       24,558       97,938       86,335  
     
 
                                
Gross Profit
     5,088       5,319       18,415       17,713  
 
                                
Selling, general and administrative expenses
     4,321       4,578       17,043       16,652  
     
 
                                
Operating income
     767       741       1,372       1,061  
     
 
                                
Other:
                                
Interest income (expense), net
     (1 )     1       1       (30 )
Miscellaneous, net
     24       36       25       83  
     
Other income
     23       37       26       53  
     
 
                                
Income from continuing operations before income taxes
     790       778       1,398       1,114  
 
                                
Income tax expense (benefit)
     284       (1,896 )     515       (1,769 )
     
 
                                
Net income from continuing operations
   $ 506     $ 2,674     $ 883     $ 2,883  
 
                                
Discontinued operations:
                                
Adjustment to loss on sale of discontinued operations, net of income taxes
     —       45       —       45  
     
 
                                
Net income
   $ 506       2,719       883       2,928  
     
 
                                
Basic net income per common share:
                                
Continuing operations
   $ 0.18     $ 0.94     $ 0.31     $ 1.01  
Discontinued operations
   $ —     $ 0.02     $ —     $ 0.02  
     
Basic net income per common share
   $ 0.18     $ 0.96     $ 0.31     $ 1.03  
     
 
                                
Diluted net income per common share:
                                
Continuing operations
   $ 0.17     $ 0.92     $ 0.30     $ 0.99  
Discontinued operations
   $ —     $ 0.02     $ —     $ 0.02  
     
Diluted net income per common share
   $ 0.17     $ 0.94     $ 0.30     $ 1.01  
     
 
                                
Weighted average number of common shares used in computing net income per common share
                               
Basic
     2,840,345       2,838,048       2,839,272       2,848,821  
     
Diluted
     2,933,898       2,908,492       2,921,853       2,902,470  
     

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PAGE 3 / ABLEST REPORTS RECORD FISCAL 2004 AND FOURTH QUARTER REVENUE

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

                 
    December 26, 2004     December 28, 2003  
ASSETS
                
CURRENT ASSETS
                
Cash and cash equivalents
   $ 1,357     $ 1,614  
Accounts receivable, net
     16,783       13,778  
Prepaid expenses and other current assets
     160       213  
Current deferred tax asset
     1,369       1,085  
 
            
Total current assets
     19,669       16,690  
 
                
Property, plant and equipment, net
     543       647  
Deferred tax asset
     3,208       3,920  
Goodwill, net
     1,283       1,283  
Other assets
     40       39  
 
            
 
                
Total assets
   $ 24,743     $ 22,579  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
CURRENT LIABILITIES
                
Accounts payable
   $ 378     $ 326  
Accrued expenses and other current liabilities
     5,483       4,438  
 
            
Total current liabilities
     5,861       4,764  
 
                
Other liabilities
     117       89  
 
            
 
                
Total liabilities
     5,978       4,853  
 
            
 
                
COMMITMENTS AND CONTINGENCIES
                
 
                
STOCKHOLDERS’ EQUITY
                
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at December 26, 2004 and December 28, 2003
     —       —  
Common stock of $.05 par value; 7,500,000 shares authorized, 3,334,344 and 3,308,929 shares issued and outstanding including shares held in treasury at December 26, 2004 and December 28, 2003, respectively
     167       165  
Additional paid-in capital
     5,172       5,018  
Retained earnings
     15,536       14,653  
Treasury stock at cost; 457,729 shares held at September 26, 2004 and December 28, 2003
     (2,110 )     (2,110 )
 
            
 
                
Total stockholders’ equity
     18,765       17,726  
 
            
 
                
Total liabilities and stockholders’ equity
   $ 24,743     $ 22,579  
 
            

#####

     
SOURCE:
  Ablest Inc.
CONTACT:
  Vincent J. Lombardo, Vice President and Chief Financial Officer, 727-299-1200 or vlombardo@ablest.com/