TAMPA, Fla., May 14 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced that revenue for the 13-week fiscal first quarter ended April 1, 2007, decreased 12.2 percent to $31.5 million from revenue of $35.9 million in the 14-week fiscal first quarter of 2006. Net loss for first quarter 2007 was $290,000 or $0.10 per diluted share compared to net income of $348,000 or $0.12 per diluted share for the first three months of 2006.
Kurt R. Moore, president and chief executive officer, said, "The net loss for the quarter is attributable to both incremental professional fees expense approximating $626,000 relating to the Special Committee of the Board of Directors evaluation of buyout proposals and other strategic alternatives and continuing weakness in the homebuilding, furniture and consumer products markets. In addition, the first quarter of 2006 contained 14 weeks as compared with 13 weeks in 2007. Nonetheless, we expect business conditions to improve as 2007 progresses. Our new business pipelines are healthy and existing customers are indicating increasing demand for our services over the remainder of the year." About Ablest Ablest is a leader in workforce services; creating and delivering local solutions that enable companies to compete and win in an ever-changing business world. Services are provided through its Staffing Services and Professional Services Divisions. Staffing Services offers customers a range of employment services in the office and light industrial sectors including employee assessment and selection, training, managed services and vendor-on- premise (VOP) programs. Professional Services offers employment and consulting services in the Information Technology and Finance and Accounting sectors. Ablest's Services focus on improving customer performance in the areas of quality, efficiency and cost-reduction within their workforce. Ablest supplies more than 35,000 field employees and consultants to approximately 2,000 businesses annually through 62 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. Management's estimates and assumptions are based on historical experience and other factors believed to be reasonable under the circumstances. The following important factors, among others, could affect future results and events, causing those results and events to differ materially from those expressed or implied in our forward-looking statements: business conditions and competitive factors in our customers' industries, our ability to successfully expand into new markets and offer new service lines, the availability of qualified personnel, the non-exclusive, short-term nature of our customers' commitments, economic and political conditions and unemployment levels in the United States and other countries, increases in payroll related costs, including state unemployment insurance and workers compensation insurance, obsolescence or impairment of our information systems, our ability to successfully invest in and implement information systems, the cost of and our ability to comply with Section 404 of the Sarbanes-Oxley Act of 2002, liabilities under our self-insurance program, and other factors that we may not have currently identified or quantified. In addition, 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 For the
Thirteen Week Fourteen Week
Period Ended Period Ended
April 1, 2007 April 2, 2006 Net service revenues $ 31,473 $ 35,864
Cost of services 25,790 29,753 Gross profit 5,683 6,111 Selling, general and administrative
expenses 6,300 5,551 Operating (loss) income (617) 560 Other:
Interest income (expense), net -- --
Miscellaneous income (expense), net 4 1
Other income (expense) 4 1 (Loss) income before income taxes (613) 561 Income tax (benefit) expense (323) 213 Net (loss) income $ (290) $ 348 Basic net (loss) income per common share $ (0.10) $ 0.12
Diluted net (loss) income per common share $ (0.10) $ 0.12 Weighted average number of common shares
used in computing net income per common
share
Basic 2,916,112 2,879,764
Diluted 2,958,890 2,935,050 ABLEST INC. Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
(Unaudited) April 1, 2007 December 31, 2006
ASSETS
CURRENT ASSETS
Cash $ 4,350 $ 3,040
Accounts receivable, net 14,605 17,564
Prepaid expenses and other
current assets 476 439
Current deferred tax asset 1,504 1,323 Total current assets 20,935 22,366 Property, plant and equipment, net 3,330 3,259
Deferred tax asset 871 592
Goodwill 1,283 1,283
Other assets 65 64 Total assets $ 26,484 $ 27,564 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 408 $ 375
Income taxes payable -- 296
Accrued insurance 1,923 2,965
Accrued wages 2,463 1,995
Other current liabilities 659 566 Total current liabilities 5,453 6,197 Other liabilities 262 261 Total liabilities 5,715 6,458
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY
Preferred stock of $.05 par value;
500,000 shares authorized, none issued
or outstanding at April 1, 2007 and
December 31, 2006 -- --
Common stock of $.05 par value; 7,500,000
shares authorized, 3,382,833 and 3,385,153
shares issued and outstanding including
shares held in treasury at April 1, 2007
and December 31, 2006, respectively 169 169
Additional paid-in capital 5,589 5,636
Retained earnings 17,121 17,411
Treasury stock at cost; 457,729 shares held
at April 1, 2007 and December 31, 2006 (2,110) (2,110) Total stockholders' equity 20,769 21,106 Total liabilities and stockholders'
equity $ 26,484 $ 27,564
DATASOURCE: Ablest Inc.
CONTACT: John Horan, Vice President and Chief Financial Officer of Ablest Inc., +1-813-830-7700,
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