AIH Ablest

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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