Ablest Reports Financial Results for First Quarter
May 12 2004 - 11:02AM
PR Newswire (US)
Ablest Reports Financial Results for First Quarter CLEARWATER,
Fla., May 12 /PRNewswire/ -- Ablest Inc. today announced that
revenue for the first quarter of fiscal 2004 reached $25.8 million,
an increase of 10.9 percent or $2.5 million from the comparable
quarter of the prior year. After a $734,000 increase in the
provision for workers' compensation self-insurance claims and
higher state unemployment costs, the company incurred a net loss of
$441,000 or 16 cents per basic and diluted share for the quarter.
This compares with a net loss of $69,000 or two cents per basic and
diluted share in the first quarter of 2003. Kurt R. Moore,
president and chief executive officer, said, "I am pleased with our
revenue increase in the first quarter. Requirements for staffing
services were strong, particularly at several large existing client
companies, and revenue was higher from both light industrial and
clerical customers. I believe the increase in clerical business
indicates continued economic improvement." Mr. Moore added, "Our
associates drove this growth utilizing our service- oriented
operating culture to penetrate existing markets. It is exciting to
see our associates' intensity, ownership and passion reflected in
the revenue results. In addition, we expanded our geographic
footprint by opening a new branch late in the first quarter as part
of our strategy to develop new markets along with existing ones."
He said, "Results for the quarter were negatively impacted by the
increase we made in our workers' compensation reserves and higher
state unemployment costs. In the first quarter, we adjusted our
estimate for workers' compensation reserves to reflect updated loss
development criteria generated from an actuarial study completed in
early April 2004. Although the actuarial analysis resulted an
additional provision, we are experiencing a positive trend in
workers' compensation costs associated with new claims reported in
the quarter. We believe these improvements are a result of
initiatives implemented during 2003, focused on managing new
occurrences and existing claims." 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 47 locations in the Eastern and
Southwestern United States. Certain statements contained in this
news release, including statements regarding anticipated
improvement in economic conditions and trends in workers'
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 workers' 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) For the Thirteen Week Periods Ended March 28,
2004 March 30, 2003 Net service revenues $ 25,770 $ 23,239 Cost of
services 22,141 19,116 Gross profit 3,629 4,123 Selling, general
and administrative expenses 4,337 4,245 Operating income (loss)
(708) (122) Other: Interest income (expense), net 2 (5)
Miscellaneous, net (5) 16 Other income (loss) (3) 11 Income (loss)
before income taxes (711) (111) Income tax expense (benefit) (270)
(42) Net income (loss) $ (441) $ (69) Basic net income (loss) per
common share $ (0.16) $ (0.02) Diluted net income (loss) per common
share $ (0.16) $ (0.02) Weighted average number of common shares
used in computing net income (loss) per common share Basic
2,835,951 2,861,310 Diluted 2,908,574 2,888,844 ABLEST INC.
Condensed Balance Sheets (Amounts in thousands except share and per
share amounts) March 28, 2004 December 28, 2003 (Unaudited) ASSETS
CURRENT ASSETS Cash and cash equivalents $ 2,094 $ 1,614 Accounts
receivable, net 12,150 13,778 Prepaid expenses and other current
assets 318 213 Current deferred tax asset 1,380 1,085 Total current
assets 15,942 16,690 Property, plant and equipment, net 642 647
Deferred tax asset 3,920 3,920 Goodwill, net 1,283 1,283 Other
assets 37 39 Total assets $ 21,824 $ 22,579 LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 473 $
326 Accrued expenses and other current liabilities 3,884 4,438
Total current liabilities 4,357 4,764 Other liabilities 24 89 Total
liabilities 4,381 4,853 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS'
EQUITY Preferred stock of $.05 par value; 500,000 shares
authorized, none issued or outstanding at March 28, 2004 and
December 28, 2003 -- -- Common stock of $.05 par value; 7,500,000
shares authorized, 3,334,842 and 3,308,929 shares issued and
outstanding including shares held in treasury at March 28, 2004 and
December 28, 2003, respectively 167 165 Additional paid-in capital
5,174 5,018 Retained earnings 14,212 14,653 Treasury stock at cost;
457,729 shares held at March 28, 2004 and December 28, 2003 (2,110)
(2,110) Total stockholders' equity 17,443 17,726 Total liabilities
and stockholders' equity $ 21,824 $ 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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