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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