AIH Ablest

Ablest Reports Record Fiscal 2004 and Fourth Quarter Revenue CLEARWATER, Fla., Feb. 22 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) 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. 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, December 28, December 26, December 28, 2004 2003 2004 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 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share and per share amounts) December 26, December 28, 2004 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 DATASOURCE: Ablest Inc. CONTACT: Vincent J. Lombardo, Vice President and Chief Financial Officer of Ablest, Inc., +1-727-299-1200, or

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