EX-99.1 2 g90223exv99w1.htm EX-99.1 PRESS RELEASE DATED AUGUST 2, 2004 exv99w1
 

Exhibit 99.1

     

(ABLEST logo)   1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
(727) 299-1200
www.ablest.com

     

FOR IMMEDIATE RELEASE
Monday August 2, 2004 		  SYMBOL: AIH
TRADED: AMEX

ABLEST REPORTS SECOND QUARTER AND FIRST HALF RESULTS

     CLEARWATER, Fla., August 2 — Ablest Inc. today announced that fiscal second quarter 2004 revenues were $26.8 million, an increase of 10.6 percent compared to revenues of $24.3 million for the similar period in 2003. Net income was $230,000 or eight cents per basic and diluted share for the quarter compared with a net loss of $72,000 or three cents per basic and diluted share in the second quarter of 2003. Comparatively, last year’s second quarter results were negatively impacted by a $600,000 increase in the company’s reserves for workers’ compensation claims.

     Revenues for the first six months of fiscal 2004 increased 10.7 percent to $52.6 million from $47.5 million in the corresponding period of the prior year. For the six months ended June 27, 2004, the company reported a net loss of $211,000 or seven cents per basic and diluted share compared to the first half of 2003 when the company reported a net loss of $141,000 or five cents per share. For the first six months of 2004, worker’s compensation costs were 3.7 percent of revenues as compared to 3.6 percent in the first six months of 2003.

     Kurt R. Moore, president and chief executive officer, said, “Staffing requirements increased from most of our existing large client companies, including both light industrial and clerical customers. In addition, revenue from new clients contributed to our higher volume and expanded our client base.”

     “Overall, the demand for staffing industry jobs increased further in the second quarter,” Mr. Moore added. “We continue to capitalize on growth opportunities presented by the economic environment. We are successfully generating new accounts while supporting current customers with our service-oriented operating culture. During the second quarter, we also opened two locations in new markets.”

     Mr. Moore said, “We continue to work closely on initiatives to manage workers’ compensation and unemployment insurance costs. SG&A expenses for the quarter, at 15.9% of revenue, were flat on a percentage basis with the prior year. Our financial condition remains healthy with no debt.”

     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 48 locations in the Eastern and Southwestern United States.

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PAGE 2 / ABLEST REPORTS SECOND QUARTER AND FIRST HALF RESULTS

     Certain statements contained in this news release, including statements regarding anticipated improvement in economic conditions and trends in worker’s compensation claims, and other statements contained herein regarding matters that are not historical facts, are “forward-looking” statements (as such term is defined in The Private Securities Litigation Reform Act of 1995, as amended). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, changes in general economic conditions and unforeseen events impacting new worker’s compensation claims, and those risks and uncertainties discussed in filings made by the Company with the Securities and Exchange Commission, including its periodic reports on Forms 10-K and 10-Q.

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

                                 
    Thirteen Week   Twenty-six Week    
    Period Ended
  Period Ended
    
    June 27, 2004
   June 29, 2003
   June 27, 2004
   June 29, 2003
Net service revenues
   $ 26,827     $ 24,264     $ 52,597     $ 47,503  
Cost of services
     22,203       20,550       44,344       39,666  
 
    
 		      
 		      
 		      
 		  
Gross profit
     4,624       3,714       8,253       7,837  
Selling, general and administrative expenses
     4,258       3,830       8,595       8,075  
 
    
 		      
 		      
 		      
 		  
Operating income (loss)
     366       (116 )     (342 )     (238 )
Other:
                                
Interest income (expense), net
     —       (17 )     2       (22 )
Miscellaneous, net
     6       17       1       33  
 
    
 		      
 		      
 		      
 		  
Other income (loss)
     6       —       3       11  
 
    
 		      
 		      
 		      
 		  
Income (loss) before income taxes
     372       (116 )     (339 )     (227 )
Income tax expense (benefit)
     142       (44 )     (128 )     (86 )
 
    
 		      
 		      
 		      
 		  
Net income (loss)
   $ 230     $ (72 )   $ (211 )   $ (141 )
 
    
 		      
 		      
 		      
 		  
Basic net income (loss) per common share
   $ 0.08     $ (0.03 )   $ (0.07 )   $ (0.05 )
 
    
 		      
 		      
 		      
 		  
Diluted net income (loss) per common share
   $ 0.08     $ (0.03 )   $ (0.07 )   $ (0.05 )
 
    
 		      
 		      
 		      
 		  
Weighted average number of common shares used in computing net income (loss) per common share
                                
Basic
     2,840,443       2,868,381       2,838,197       2,864,845  
Diluted
     2,918,708       2,868,381       2,913,641       2,864,845  

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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 27, 2004
 December 28, 2003
ASSETS
   (Unaudited)        
Current assets:
                
Cash and cash equivalents
   $ 2,410     $ 1,614  
Accounts receivable, net
     12,621       13,778  
Prepaid expenses and other current assets
     344       213  
Current deferred tax asset
     1,239       1,085  
 
    
 		      
 		  
Total current assets
     16,614       16,690  
Property, plant and equipment, net
     616       647  
Deferred tax asset
     3,920       3,920  
Goodwill, net
     1,283       1,283  
Other assets
     38       39  
 
    
 		      
 		  
Total assets
   $ 22,471     $ 22,579  
 
    
 		      
 		  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable
   $ 479     $ 326  
Accrued expenses and other current liabilities
     4,273       4,438  
 
    
 		      
 		  
Total current liabilities
     4,752       4,764  
Other liabilities
     48       89  
 
    
 		      
 		  
Total liabilities
     4,800       4,853  
 
    
 		      
 		  
COMMITMENTS AND CONTINGENCIES
                
STOCKHOLDERS’ EQUITY:
                
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at June 27, 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 June 27, 2004 and December 28, 2003, respectively
     167       165  
Additional paid-in capital
     5,172       5,018  
Retained earnings
     14,442       14,653  
Treasury stock at cost; 457,729 shares held at June 27, 2004 and December 28, 2003
     (2,110 )     (2,110 )
 
    
 		      
 		  
Total stockholders’ equity
     17,671       17,726  
 
    
 		      
 		  
Total liabilities and stockholders’ equity
   $ 22,471     $ 22,579  
 
    
 		      
 		  
     
SOURCE:
  Ablest Inc.
CONTACT:
  Vincent J. Lombardo, Vice President and Chief Financial Officer,
727-299-1200 or vlombardo@ablest.com/