TAMPA, Fla., Aug. 10 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today reported that revenue for the fiscal second quarter ended July 2, 2006 increased 4.9 percent to $34.3 million as compared to revenue of $32.8 million in the 2005 second quarter. Net income decreased to $285,000 or $0.10 per diluted share compared to $574,000 or $0.20 per diluted share for the similar period last year. Net income in the fiscal second quarter was negatively impacted because of higher than planned increase in workers' compensation expense accruals of approximately $254,000.
Revenues for the first 27 weeks of fiscal 2006 increased 10.4 percent to $70.2 million from $63.6 million in the corresponding 26-week period of the prior year. For the six months ended July 2, 2006, net income was $633,000 or $0.21 per diluted share compared to the first half of 2005 when the company reported net income of $838,000 equal to $0.29 cents per diluted share.
Kurt R. Moore, president and chief executive officer, said, "The company experienced an increase in claims costs and incidence rates in 2006, which required an increase in our workers' compensation expense estimates. Senior management is addressing this matter to reduce the growth rate of the expense." 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 37,000 field employees and consultants to approximately 2,000 businesses annually through 58 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 Income
(amounts in thousands except share and per share data)
(Unaudited) Thirteen Twenty Seven Twenty Six
Week Week Week
Periods Ended Period Ended Period Ended
July 2, June 26, July 2, June 26,
2006 2005 2006 2005 Net service revenues $ 34,340 $ 32,751 $ 70,204 $ 63,586
Cost of services 28,398 27,009 58,151 52,867 Gross profit 5,942 5,742 12,053 10,719 Selling, general and
administrative
expenses 5,466 4,815 11,017 9,364 Operating income 476 927 1,036 1,355 Other:
Interest income, net 10 -- 9 --
Miscellaneous, income
(expense), net 19 -- 21 (3) Other income (expense) 29 -- 30 (3) Income before
income taxes 505 927 1,066 1,352 Income tax expense 220 353 433 514 Net income $ 285 $ 574 $ 633 $ 838 Basic net income
per common share $ 0.10 $ 0.20 $ 0.22 $ 0.29
Diluted net income
per common share $ 0.10 $ 0.20 $ 0.21 $ 0.29
Weighted average
number of common
shares in computing
net income per
common share
Basic 2,933,268 2,863,509 2,915,761 2,859,043
Diluted 2,971,642 2,940,368 2,952,721 2,933,530 ABLEST INC. Condensed Balance Sheets
(amounts in thousands except share data)
(Unaudited) July 2, 2006 December 25, 2005 ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 3,698 $ 1,931
Accounts receivable, net 16,355 18,760
Prepaid expenses and other current assets 704 469
Current deferred tax asset 1,246 1,246 Total current assets 22,003 22,406 Property and equipment, net 2,329 1,732
Deferred tax asset 681 863
Goodwill 1,283 1,283
Other assets 245 171 Total assets $ 26,541 $ 26,455 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 739 $ 841
Accrued insurance 2,235 2,536
Accrued wages 2,500 2,738
Other current liabilities 469 514 Total current liabilities 5,943 6,629 Other liabilities 198 432 Total liabilities 6,141 7,061 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY
Preferred stock of $.05 par value; 500,000
shares authorized, none issued or
outstanding at July 2, 2006 and December
25, 2005 -- --
Common stock of $.05 par value; 7,500,000
shares authorized, 3,387,118 and 3,334,344
shares issued and outstanding including
shares held in treasury at July 2, 2006
and December 25, 2005, respectively 169 167
Additional paid-in capital 5,636 5,265
Retained earnings 16,705 16,072
Treasury stock at cost; 457,729 shares held
at July 2, 2006 and December 25, 2005 (2,110) (2,110) Total stockholders' equity 20,400 19,394 Total liabilities and stockholders' equity $ 26,541 $ 26,455
DATASOURCE: Ablest Inc.
CONTACT: John Horan, Vice President and Chief Financial Officer of Ablest, Inc., +1-813-830-7700, or
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