Ablest Reports First Quarter Profit
CLEARWATER, Fla., May 5 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced
revenue for the fiscal first quarter ended March 27, 2005, of $30.8 million, an
increase of 19.7 percent over revenue of $25.8 million in the fiscal first
quarter of 2004. Net income was $264,000 or $0.09 per diluted share compared to
a net loss of $441,000 or $0.16 loss per diluted share.
"The first quarter continued the momentum generated through the end of 2004,"
said Kurt R. Moore, president and chief executive officer. "We are pleased and
excited with this revenue and profit performance. Both are first quarter
records for Ablest." Mr. Moore added, "The revenue increase was evenly split between branches opened
in 2004 and previously existing branches. Greater staffing requirements from
existing clients and the addition of several large industrial clients
contributed to the growth. In addition, we opened two new branch locations
during the quarter, in accordance with our expansion plan." "Our gross margin improved two percentage points to 16.1 percent compared to
the first quarter of 2004," Mr. Moore said. "The margin improvement resulted
primarily from recording an adjustment to our provision for workers'
compensation claims in the prior year with no corresponding adjustment this
year. We continue our efforts to minimize workers' compensation costs through
our safety initiatives and return-to-work programs. Profitability also
improved as a result of our sales initiatives and close management of expenses
in support of our new branches and growth initiatives." 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 51 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
Periods Ended
March 27, March 28,
2005 2004 Net service revenues $ 30,835 $ 25,770
Cost of services 25,858 22,141 Gross profit 4,977 3,629 Selling, general and administrative expenses 4,549 4,337 Operating income (loss) 428 (708) Other:
Interest income, net -- 2
Miscellaneous, net (3) (5)
Other income (loss) (3) (3) Income (loss) before income taxes 425 (711) Income tax expense (benefit) 161 (270) Net income (loss) $ 264 $ (441) Basic net income (loss) per common share $ 0.09 $ (0.16)
Diluted net income (loss) per common share $ 0.09 $ (0.16) Weighted average number of common shares used
in computing net income (loss) per common share
Basic 2,854,578 2,835,951
Diluted 2,926,692 2,908,574
ABLEST INC. Condensed Balance Sheets
(Amounts in thousands except share and per share amounts) March 27, December 26,
2005 2004
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,425 $ 1,357
Accounts receivable, net 14,703 16,783
Prepaid expenses and other current assets 346 160
Current deferred tax asset 1,235 1,369 Total current assets 18,709 19,669 Property, plant and equipment, net 513 543
Deferred tax asset 3,208 3,208
Goodwill, net 1,283 1,283
Other assets 430 40 Total assets $ 23,756 $ 24,743 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 402 $ 378
Accrued insurance 1,766 3,069
Accrued wages 1,886 1,989 Other current liabilities 527 425 Total current liabilities 4,581 5,861 Other liabilities 29 117 Total liabilities 4,610 5,978 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY
Preferred stock of $.05 par value;
500,000 shares authorized, none issued
or outstanding at March 27, 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
March 27, 2005 and December 26, 2004,
respectively 168 167
Additional paid-in capital 5,288 5,172
Retained earnings 15,800 15,536
Treasury stock at cost; 457,729 shares
held at March 27, 2005 and
December 26, 2004 (2,110) (2,110) Total stockholders' equity 19,146 18,765 Total liabilities and
stockholders' equity $ 23,756 $ 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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