Ablest Reports Second Quarter Profit More Than Doubled; Signs Three-Year Extension on Credit Agreement at Reduced Rates
August 04 2005 - 9:18AM
PR Newswire (US)
CLEARWATER, Fla., Aug. 4 /PRNewswire/ -- Ablest Inc. (AMEX:AIH)
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
$0.07 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. 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, June 27, June 26, June 27,
2005 2004 2005 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 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 $ 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 ABLEST INC.
Condensed Balance Sheets (Amounts in thousands except share and per
share amounts) June 26, 2005 December 26, 2004 (Unaudited) ASSETS
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
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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